Spire completes sale of natural gas storage businesses to I Squared Capital for $650 million

Rhea-AI Summary

Spire (NYSE: SR) completed the sale of its natural gas storage businesses in Wyoming and Oklahoma to I Squared Capital for $650 million, effective June 30, 2026.

The deal includes $600 million cash at closing plus a $50 million fixed deferred payment in fiscal 2027, with proceeds helping fund Spire’s Piedmont Natural Gas Tennessee acquisition.

Positive

• Divests storage businesses for total consideration of $650 million
• Receives $600 million cash at closing to strengthen liquidity
• Additional $50 million fixed, non-contingent payment due in fiscal 2027
• Proceeds help fund Piedmont Natural Gas Tennessee acquisition completed March 31, 2026
• Refocuses on core regulated natural gas utility operations

Negative

• Exits natural gas storage operations in Wyoming and Oklahoma, including 72 Bcf capacity

News Market Reaction – SR

-0.12%

-0.12% Session close to close

In the Jul 1 session, SR declined 0.12%, reflecting a mild negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

Market Context

This announcement completes a $650 million divestiture of storage assets, funding the Piedmont Tenne...

Analysis

This announcement completes a $650 million divestiture of storage assets, funding the Piedmont Tennessee purchase and sharpening SR’s regulated focus. Investors may track how proceeds affect leverage and returns, and whether additional portfolio reshaping follows.

Key Figures

Sale price: $650 million Cash at closing: $600 million Deferred payment: $50 million +2 more

5 metrics

Sale price $650 million Total consideration for Spire Storage sale to I Squared Capital

Cash at closing $600 million Cash proceeds received at closing for Spire Storage sale

Deferred payment $50 million Fixed, non-contingent deferred payment due in fiscal 2027

Wyoming storage capacity 55 Bcf Authorized working gas capacity of Wyoming storage assets

Oklahoma storage capacity 17 Bcf Authorized working gas capacity of Oklahoma storage asset

Historical Context

5 past events · Latest: May 06 (Positive)

Pattern 5 events

Date	Event	Sentiment	24h Move	Catalyst
May 06	Earnings and guidance	Positive	-4.0%	Strong Q2 earnings, Piedmont closing, asset sales, and raised guidance.
Apr 30	Business divestiture	Positive	-0.8%	Sale of Spire Marketing unit to Boardwalk for cash consideration.
Apr 30	Asset sale proceeds	Positive	-0.8%	Completed $215 million cash sale of gas marketing business.
Apr 30	Dividend declaration	Positive	+1.6%	Quarterly dividend, extending a 23‑year dividend‑increase streak.
Apr 22	Regulated asset sale	Neutral	-0.9%	Agreement to sell Spire Mississippi utility to Delta Utilities.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Pattern Detected

SR has often traded lower on generally constructive strategic and earnings updates, with only dividend news aligning positively with price.

Key Terms

working gas capacity, non-contingent deferred payment, regulated natural gas utility

3 terms

working gas capacity technical

"the natural gas storage assets are certificated to provide up to 55 Bcf of working gas capacity"

Working gas capacity is the amount of natural gas in a storage facility that can be withdrawn and used or sold during normal operations, excluding the baseline 'cushion' gas that must remain in place. For investors, it signals how much usable supply the asset can deliver to meet seasonal demand or generate storage revenue—similar to the usable fuel in a car’s tank versus the reserve left to keep the engine running.

non-contingent deferred payment financial

"a $50 million fixed, non-contingent deferred payment to be received in Spire's fiscal year 2027"

A non-contingent deferred payment is a legally binding promise to pay a fixed amount at a later date that does not depend on future events or performance. For investors it matters because it creates a certain future liability or receivable that affects a company’s cash flow and valuation—like agreeing to pay for a purchase with a postdated check: the timing shifts, but the obligation remains definite and must be planned for.

regulated natural gas utility technical

"Transaction sharpens Spire's focus on regulated natural gas utility businesses"

A regulated natural gas utility is a company that delivers natural gas to homes and businesses under rules set by government agencies that approve who it serves and what it can charge. Think of it like a public highway operator whose tolls and upkeep are overseen by regulators: this oversight tends to make the utility’s revenue and dividends more predictable for investors, but earnings can be affected by approved rate changes, infrastructure costs and regulatory decisions.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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• Transaction sharpens Spire's focus on regulated natural gas utility businesses
• Proceeds used to partially fund the acquisition of the Piedmont Natural Gas Tennessee business
• Spire Storage employees and customers will become part of the new I Squared portfolio company Bear River Midstream LLC

ST. LOUIS, June 30, 2026 /PRNewswire/ -- Spire Inc. (NYSE: SR) today announced it has completed the sale of its natural gas storage businesses in Wyoming and Oklahoma ("Spire Storage") to I Squared Capital, effective June 30, 2026, for $650 million.

Spire Storage employees and customers will become part of the new I Squared portfolio company Bear River Midstream LLC.

Total consideration for the transaction consists of $600 million in cash received at closing and a $50 million fixed, non-contingent deferred payment to be received in Spire's fiscal year 2027.

Proceeds from the transaction help fund Spire's previously completed acquisition of the Piedmont Natural Gas Tennessee business, which closed on March 31, 2026.

"This closing marks an important milestone for Spire as we continue to sharpen our focus on our core regulated utility business," said Scott Doyle, president and chief executive officer of Spire. "We're proud of the strong storage platform we built and are grateful to the employees who contributed to its success and the overall success of Spire. With this transaction complete, we've further enhanced our financial position and are well positioned to deliver long-term, sustainable value for our customers and shareholders."

"With Bear River Midstream, we plan to enhance operational capabilities and pursue expansion opportunities that meet the increasing market demand for energy storage across the Western and Mid-Continent regions," said Scott Smith, chief executive officer of Bear River Midstream and former president of Spire Storage. "We are happy to provide our customers a seamless transition because the same operations and service teams customers already know will continue working with the company."

The former Spire Storage business includes two storage fields in southwestern Wyoming and another in north central Oklahoma. In Wyoming, the natural gas storage assets are certificated to provide up to 55 Bcf of working gas capacity to customers primarily in the western United States. In Oklahoma, the storage asset markets in the midcontinent and midwestern United States and is connected to Southern Star Pipeline and Oklahoma Gas Transmission. That facility is authorized to provide up to 17 Bcf of working gas capacity.

Greenhill, a Mizuho affiliate, acted as exclusive financial advisor to Spire. Vinson & Elkins LLP served as Spire's legal counsel. Kirkland & Ellis served as I Squared's legal advisor.

About Spire

At Spire (NYSE: SR), our vision is to deliver a stronger energy future as an industry-leading natural gas provider. We safely and reliably serve the natural gas needs of close to 2 million homes and businesses through gas utilities in Alabama, Mississippi, Missouri and Tennessee, making us one of the largest publicly traded natural gas companies in the country. We are committed to transforming our business through growing organically, investing in infrastructure and driving continuous improvement. Learn more at SpireEnergy.com.

About I Squared Capital

I Squared Capital is a leading independent global infrastructure investor dedicated to the mid-market, managing over $60 billion in assets. Founded in 2012, I Squared has evolved into one of the most diverse infrastructure investors in the world, with investments across power & utilities; transportation & logistics; digital infrastructure; environmental infrastructure; and social infrastructure, providing essential services to millions of people worldwide. Today, the portfolio includes over 100 companies operating in more than 70 countries. Headquartered in Miami, the firm has offices in Abu Dhabi, London, Munich, New Delhi, São Paulo, Singapore, Sydney and Taipei. Learn more at www.isquaredcapital.com.

About Bear River Midstream

Bear River Midstream is a midstream energy company delivering safe and reliable natural gas storage across the Western and Mid-Continent United States. Backed by I Squared Capital and led by an experienced midstream energy team, the company's strategically located storage assets help balance supply and demand to ensure energy is available when customers need it most. Bear River Midstream serves utilities, pipelines, power generators, industrial customers and energy producers across key U.S. markets. Learn more at www.brmidstream.com.

Investor Contact:
Megan L. McPhail
314-309-6563
Megan.McPhail@SpireEnergy.com 

Media Contact:
Jason Merrill
314-342-3300
Jason.Merrill@SpireEnergy.com 

View original content to download multimedia:https://www.prnewswire.com/news-releases/spire-completes-sale-of-natural-gas-storage-businesses-to-i-squared-capital-for-650-million-302814611.html

SOURCE Spire Inc.

FAQ

What transaction did Spire (NYSE: SR) complete on June 30, 2026?

Spire completed the sale of its natural gas storage businesses in Wyoming and Oklahoma to I Squared Capital for $650 million. According to Spire, this transaction supports a sharper focus on its core regulated natural gas utility operations.

How much did Spire receive from selling its natural gas storage assets?

Spire’s total consideration is $650 million, including $600 million cash at closing and a $50 million fixed deferred payment. According to Spire, the remaining $50 million is non-contingent and is expected in its fiscal year 2027.

How will Spire use the proceeds from the $650 million storage business sale?

Spire plans to use proceeds to help fund its acquisition of the Piedmont Natural Gas Tennessee business. According to Spire, that acquisition closed on March 31, 2026, and the sale enhances the company’s overall financial position.

What happens to Spire Storage employees and customers after the sale to I Squared Capital?

Spire Storage employees and customers will move to a new I Squared portfolio company, Bear River Midstream. According to Spire, existing operations and service teams will continue, aiming to provide customers with a seamless transition and consistent service.

What storage capacity did Spire’s divested assets in Wyoming and Oklahoma provide?

The divested business includes two Wyoming fields with up to 55 Bcf of working gas capacity and an Oklahoma facility with up to 17 Bcf. According to Spire, these assets serve western, midcontinent, and midwestern U.S. markets.

How does the sale of storage assets affect Spire’s strategic focus as a utility?

Spire indicates the sale sharpens its focus on regulated natural gas utility operations and strengthens its financial profile. According to Spire’s leadership, this positions the company to pursue long-term, sustainable value for customers and shareholders.